Exporting businesses in the UK should act now to address the requirements of CBAM, a major regulatory shift that impacts trade with EU customers.
The regulatory framework is designed to reduce carbon emissions by imposing obligations on goods imported into the EU.
While it will come into force in 2026, businesses need to start preparing now to ensure they meet all the requirements for each stage of its implementation.
At Hooper & Co, we are already helping firms get their affairs in order while the changes are being phased in.
We have pulled together a CBAM guide to help bring businesses, especially manufacturers, up to speed on what they can expect.
Timeline for compliance
- Current reporting phase:
- EU importers are already collecting quarterly CBAM reports.
- This transitional period allows businesses to adjust before financial obligations begin.
- Upcoming deadlines:
- December 2025: The transition period ends.
- January 2026: Full CBAM implementation begins, including mandatory financial obligations.
- 12 months to prepare:
- Businesses now have just 12 months to establish robust tracking systems and ensure compliance with CBAM requirements.
Key challenges for UK manufacturers
- Complex goods: Many UK manufacturers export products that involve indirect emissions from precursor materials.
- Data requirements: EU customers are already demanding carbon emissions data from UK suppliers.
- Secondary processors: Businesses using electric equipment must prioritize tracking emissions from their supply chains.
Real risks of non-compliance
- Customer loss: EU buyers may switch to compliant suppliers.
- Market access: Failure to provide accurate CBAM data risks losing access to the EU market.
- Penalties for errors: Rushed or incorrect submissions could lead to financial penalties and reputational damage.
Action plan for UK businesses
- Immediate steps:
- Business need to review products exported to the EU and identify carbon reporting obligations.
- Assess your current emissions tracking capabilities.
- Engage with suppliers to understand precursor emissions.
- Long-term preparations:
- Implement systems to ensure accurate and efficient carbon emissions reporting.
- Stay informed about changes to CBAM regulations and indirect emissions reporting.
Don’t delay – act now
With just 12 months left until full implementation, UK manufacturers cannot afford to wait. Our team is already supporting businesses in navigating these complex regulations.
Contact us today to ensure your compliance and safeguard your trade with EU customers.
